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12 result(s) for tips
by Michael Kun The California Supreme Court has announced what can only be considered a major victory for hospitality employers in California. California Labor Code section 351 probibits employers from taking any tip that customers may leave for employees. Many...
Here's a Tip: Follow the Rules for Reporting Tip Income
In light of the IRS' increased efforts to root out and capture unreported income, one of our hospitality clients recently asked us to provide some clarification regarding: 1) the obligations of employees to report tip income; 2) the obligations of employers to report tip income; and 3) the risks of underreporting of the tip income of its employees.
Wage Hour Class Action/Collective Action Litigation: A View From the Bench
A faculty comprised of Defense counsel and Plaintiffs' counsel presented strategic insights to those who gathered at the American Conference Institute's 9th National Forum on Wage Hour Claims and Class Actions. I had the pleasure of moderating a judicial panel comprised of six federal jurists who offered practitioners key insights from their experience in presiding over cases alleging violation of the Fair Labor Standards Act.
Another luxury New York hotel is the latest target in a constant stream of wage and hour class actions against the hotel and restaurant industry challenging the industry's practices relating to tip pools and service charges.
Tip Pool May Include Employees Not Customarily Tipped If No Tip Credit is Taken
In a landmark decision upholding the validity of the employer's mandatory tip pool, on February 23, 2010, the U.S. Court of Appeals for the Ninth Circuit issued its opinion in Misty Cumbie v. Woody Woo, Inc. No. 08-35718. The court held that where the employer paid a direct wage of at least minimum wage to restaurant wait staff, requiring them to participate in a tip-pooling arrangement with other restaurant employees does not violate the Fair Labor Standards Act. ("FLSA")..
New York Judge Dismisses Tipping Lawsuit Against Starbucks Corp.
by Amy J. Traub On December 16, 2009, Judge Laura Taylor Swain of the United States District Court for the Southern District of New York granted summary judgment to Starbucks Corp. (“Starbucks”) in a wage/hour lawsuit filed by former and...
Practical Tips for Protecting Exempt Status of Working Supervisors
A client this week asked us to provide an opinion letter regarding the exempt status of certain supervisors, and some tips on how to avoid lawsuits regarding mis-classification. Although some of the advice was specific to the client's business, much...
New Technology Brings New FLSA Claims
A number of recent lawsuits illustrate how changing workplace technology can form the basis for creative FLSA lawsuits. A wave of claims have been brought against Fortune 500 companies alleging that non-exempt employees have not been paid for "off the...
Minimum Wage Rises for Tipped Employees in Florida
By now, you are probably aware that the minimum wage under the federal Fair Labor Standards Act goes up to $7.25 on July 24, 2009. Employers with operations in Florida know that this is four cents more than the current...
by Michael Kun How quickly can $87 million go up in smoke? Pretty darned quickly, especially if you are referring to the $87 million that was awarded to plaintiffs and their attorneys in a tip-pooling class action against Starbucks in...
Hurricane Season Brings Unique Wage and Hour Issues
As hurricane season is fast approaching, we thought it an appropriate time to offer some thoughts and tips on the wage and hour issues that should be addressed in your company's policies and procedures. The attached reference tool contains answers...
There is No Such Thing as a Free Lunch
One of the issues that repeatedly rears its head in wage and hour litigation and Department of Labor investigations is whether employees are being compensated properly for meal periods. One practice that is almost always controversial, in this regard, is...
